In response to the government’s plan to inject National Growth Fund capital into the KOSDAQ market to boost the index, lawmakers pointed out that “the index cannot be a policy goal.” They argued that, much like the National Pension Service, the National Growth Fund is also exposed to losses, and therefore its potential side effects must be carefully assessed.
On the 8th, at the Financial Services Commission audit held by the Political Affairs Committee at the Seoul Yeouido National Assembly building, Song Eon-seok, a People Power Party lawmaker, stated, “The KOSDAQ index is currently hovering around 900, yet they are saying they will take money from the National Growth Fund and pour it in to push it up to 3,000.” He added, “If that happens, the National Growth Fund could suffer losses just as the National Pension Service has.”
Song Eon-seok said, “When the state intervenes in such a policy-driven manner, extreme caution is required.” He noted, “They stated they would (inject National Growth Fund capital) to strengthen the supply and demand base of KOSDAQ with the goal of reaching 3,000, but the KOSDAQ fund itself is only worth 150 billion won.”
He continued, “Are we implementing policies simply to raise market indices? Surely neither the KOSDAQ index nor the KOSPI index can be a policy target. The capital market should expand in a way that follows industrial development and economic growth, with the stock market functioning well as a result.” He emphasized, “When injecting National Growth Fund money, side effects or backlash must absolutely be taken into account.”
Financial Services Commission Chairman Lee Eui-woon explained, “The state is not entering the KOSDAQ market (directly); rather, it enters through an indirect investment fund, and then private investors match that investment to participate (indirectly).”
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